Chancellor Rishi Sunak announces new job support scheme in boost for racing

Chancellor Rishi Sunak has announced a new jobs support scheme from November in a welcome boost for British racing's workforce.

Speaking in the House of Commons on Thursday, Sunak said the government will help to top up workers' wages for the next six months, replacing the furlough scheme that ends on October 31.

To qualify, employees must work at least a third of their hours. The scheme is aimed at small and medium-sized businesses but larger ones whose turnover has fallen because of the crisis are eligible. It is also open to employers who have not utilised the furlough scheme.

The announcement follows news that spectators may not be allowed to return to British racecourses for up to six months, which the BHA described as a 'severe threat' to the future of the racing industry.

"We will support the wages of people in work, giving businesses who faced depressed demand the option of keeping employees in a job on shorter hours, rather than making them redundant," said Sunak.

"Our economy is likely to undergo a more permanent adjustment. The sources of our economic growth and the kinds of jobs we create will adapt and evolve to the new normal.

"Our plan needs to adapt and evolve too. Above all, we need to face up to the trade-offs and hard choices coronavirus presents and there has been no harder choice than to end the furlough scheme."

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Sunak extended a number of business loan and support schemes, including a 'pay as you grow' initiative, allowing businesses ten years, rather than six, to repay the government's bounce-back loans.

The self-employed income support scheme will continue on "similar terms" to the existing job support scheme and VAT will be kept at five per cent for the hospitality and tourism sector until March 31.

The BHA has appealed to the government for direct support and warned that racecourses were facing a loss of £250 to £300 million after the proposed return of spectators on October 1 was postponed.

The Jockey Club revealed its estimated £75m revenue shortfall due to the coronavirus pandemic will be greater than first feared, while leading on-course bookmaker Keith Johnson has said that some bookmakers have received no support for six months.

Read more:

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